West LA Continues To Present Strong Market Activity At Year-End

OFFICE MARKET REPORT West LA Continues To Present Strong Market Activity At Year-End MARKET OVERVIEW MARKET INDICATORS - VACANCY 13.1% NET ABSORPTION 388,900 CONSTRUCTION 549,665 RENTAL RATE $3.70 P FSG UNEMPLOYMENT 7.9% The West Los Angeles office market recorded positive absorption of 388,900 square feet in the fourth quarter of 2014. Due to the strong demand for office space, total vacancy decreased 70 basis points to 13.1% from 13.8% in the previous quarter. Direct weighted average gross asking rents continued upward as rents jumped to $3.72 per square foot (P), per month Full Service Gross (FSG). New leasing activity recorded at 1,264,658, relative to 1,289,799 in the third quarter of 2014. Overall leasing activity was characterized by large new lease transactions dominated by the tech, media and law firm industries throughout the market. Investment sales activity in the fourth quarter included the following transactions as investors continue to take advantage of low interest rates and current market conditions: LBA Realty acquired the Sony Pictures Plaza at 10000 W Washington Blvd in Culver City for $470 P from Transpacific Development Co, Douglas Emmett, Inc. expanded their portfolio and acquired 6310 & 6330 San Vicente Blvd in West Los Angeles for $351 P from Cambra Realty, and Hudson Pacific Properties, Inc. acquired the Marina Corporate Centre at 12655 W Jefferson Blvd in Marina Del Rey for $424 P from HighBrook Investment Management. MARKET TRENDS - >> Total vacancy decreases to 13.1% HISTORICAL VACANCY VS RENTS Q4 2010 - HISTORICAL NET ABSORPTION & CONSTRUCTION COMPLETIONS - Q4 2010 - >> Weighted average asking rental rate jumped from $3.58 P FSG to $3.70 P FSG >> New leasing activity at 1,264,658 sf >> There was positive demand with 388,900 sf net absorption >> Construction activity at 549,665 sf $ P FSG PER MONTH (WEIGHTED) $4.00 $3.90 $3.80 $3.70 $3.60 $3.50 $3.40 $3.30 $3.20 $3.10 $3.00 RENTS VACANCY 4Q10 4Q11 4Q12 4Q13 4Q14 18% 16% 14% 12% 10% 8% 6% 4% % VACANT (TOTAL) 800,000 600,000 400,000 200,000 0 (200,000) (400,000) (600,000) (800,000) (1,000,000) (1,200,000) NET ABSORPTION CONSTRUCTION COMPLETIONS 4Q10 4Q11 4Q12 4Q13 4Q14 1 Colliers International continuously refines its database. As a result, data reflected in this report may not be consistent with data reported in previous quarters. www.colliers.com/losangeles

MARKET REPORT OFFICE LOS ANGELES DEMOGRAPHICS >> POPULATION: 10,063,995 (2014 Estimate) 10,423,669 (2019 Projection) 3.57% (Growth 2014-2019) >> HOUSEHOLD INCOME: $75,972 (Average) $53,125 (Median) >> JOB GROWTH: 2.5% (past 12 months) >> UNEMPLOYMENT RATE: 7.9% (as of November 2014) VACANCY The total vacancy rate, including sublet space, decreased to 13.1%. This is a 70 basis point decrease relative to last quarter. Total vacancy rates were the highest in the West Hollywood submarket (22.7%) and lowest in the Olympic Corridor submarket, at a rate of 7.2%. rates were highest for Class A space (14.1%) and lowest for Class C space (4.2%) with Class B space in-between at 9.5%. Compared to the surrounding Los Angeles County submarkets, the West Los Angeles market continues to see tightening market conditions due to the high demand of creative office space from technology, media and entertainment users. NET ABSORPTION Net absorption was 388,900 sf in the fourth quarter, a representation of the continued positive demand trend in the West LA market since fourth quarter 2012. The best performing submarkets in fourth quarter were as follows: Marina Del Rey (136,100 ), West Hollywood (84,300 ), Olympic Corridor (59,200 ), Beverly Hills (42,200 ) and Brentwood (30,000 ). Five submarkets recorded negative absorption: Miracle Mile (-48,400 ), West Los Angeles (-9,000 ), Culver City (-6,600 ), Westwood (-3,600 ) and Santa Monica (-100 ). The tenants that occupied space in the fourth quarter are as follows: Oprah Winfrey Network moved into 61,000 at 1041 N Formosa Ave in West Hollywood, Haute Look.com moved into 59,200 at 8680 Hayden Pl in Culver City and First Pacific Advisors moved into 28,752 at 11601 Wilshire Blvd in Brentwood. UNEMPLOYMENT November 2014 figures for nonfarm employment in Los Angeles County showed a recovering job market. Over the past 12 months, Los Angeles County has gained 113,300 jobs for an increase of 2.5 percent. This gain in employment led to the unemployment lowering to 7.9% compared to 9.1% one year ago. Year-over-year job gains were most significant in Educational and Health Services (+22,900) and Professional and Business Services (+21,800). VACANCY BY SUBMARKET West Los Angeles Market NET ABSORPTION BY SUBMARKET West Los Angeles Market 25% 20% SUBLEASE VACANCY DIRECT VACANCY 2.2% 0.4% 150,000 100,000 59,200 105,800 84,300 136,100 % VACANT 15% 10% 5% 0.4% 1.0% 6.8% 7.0% 0.4% 0.6% 13.1% 13.2% 12.9% 13.4% 14.8% 0.9% 0.0% 0.4% 0.8% 0.6% 9.2% 11.4% 19.8% 22.3% 50,000 0 (50,000) (9,000) (6,600) (3,600) (48,400) (100) 41,200 30,000 0% (100,000) P. 2 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE OFFICE OVERVIEW EXISTING PROPERTIES VACANCY ACTIVITY ABSORPTION CONSTRUCTION RENTS Submarket/ Class Bldgs Total Inventory Direct Sublease Total Total Prior Qtr Leasing Activity Current Qtr Leasing Activity YTD Net Absorption Current Qtr Net Absorption YTD Completions Current Qtr Under Construction Weighted Avg Asking Lease Rate A 230 44,901,044 13.1% 1.0% 14.1% 14.6% 956,764 3,534,359 208,700 976,400 0 269,322 $3.84 B 174 10,567,141 9.1% 0.4% 9.5% 10.8% 301,134 1,103,904 135,400 405,400 0 280,343 $3.34 C 19 736,560 4.2% 0.0% 4.2% 5.8% 6,760 43,504 11,500 52,200 0 0 $2.78 SUBTOTAL 20 10,593,420 11.4% 0.9% 12.3% 13.3% 220,218 658,915 105,800 222,200 0 0 $4.32 SUBTOTAL 102 9,208,213 7.0% 1.0% 8.1% 8.1% 191,650 864,546 (100) 203,800 0 0 $4.21 SUBTOTAL 72 6,815,911 9.2% 0.6% 9.8% 10.4% 113,433 472,888 41,200 124,500 0 64,900 $4.68 SUBTOTAL 25 5,272,006 12.9% 0.8% 13.6% 12.7% 150,525 412,785 (48,400) (17,700) 0 0 $2.90 SUBTOTAL 27 4,736,741 13.4% 0.6% 14.0% 13.9% 154,378 439,172 (3,600) 70,600 0 0 $3.82 SUBTOTAL 46 3,632,685 14.8% 0.4% 15.2% 15.0% 30,329 209,925 (6,600) 261,700 0 0 $2.48 SUBTOTAL 48 5,888,356 19.8% 2.2% 22.0% 24.4% 176,398 589,576 136,100 322,400 0 204,422 $3.18 SUBTOTAL 20 3,363,353 13.2% 0.4% 13.6% 14.5% 96,015 418,084 30,000 221,200 0 0 $3.48 SUBTOTAL 22 3,020,709 6.8% 0.4% 7.2% 9.1% 82,947 296,577 59,200 49,000 0 280,343 $3.33 SUBTOTAL 31 2,823,711 22.3% 0.4% 22.7% 25.7% 36,528 230,080 84,300 51,600 0 0 $4.25 SUBTOTAL 10 849,600 13.1% 0.0% 13.1% 12.0% 12,237 89,209 (9,000) 5,400 0 0 $2.62 MARKET TOTAL TOTAL 423 56,204,705 12.3% 0.9% 13.1% 13.8% 1,264,658 4,681,757 388,900 1,463,100 0 549,665 $3.70 COLLIERS INTERNATIONAL P. 3

MARKET REPORT OFFICE >> Average rental rates have been increasing at a measured pace since fourth quarter 2011; this trend is expected to continue into 2015 >> The tech, media and entertainment sectors continue to dominate the West Los Angeles market leasing activity >> Strong leasing activity is expected to provide the West Los Angeles market with momentum continuing a positive absorption trend CONSTRUCTION There were no new buildings delivered to the market in the fourth quarter. The West Los Angeles office market recorded 549,665 square feet of space under renovation. The projects are as follows: Hundson Pacific Properties is renovating the Element LA campus in the Olympic Corridor consisting of five buildings totalling 280,343. Tishman Speyer currently has 204,422 under construction at The Campus at Playa Vista and Kennedy-Wilson Properties is renovating 150 S El Camino Dr totaling 64,937 in Beverly Hills. ACTIVITY New leasing activity during fourth quarter was 1,264,658 square feet, a 2% decrease compared to last quarter. The tech, media and entertainment sectors continue to dominate the West Los Angeles market with large lease signings. The tenants that signed leases in fourth quarter are as follows: Yahoo! signed a new lease for 131,592 at The Campus At Playa Vista at 11975-11995 W Bluff Creek Dr in Marina Del Rey. 12130-12180 Millennium in Playa Vista witnessed activity as Fullscreen leased 58,000 and GroupM leased 49,000. Also of note, Milbank, Tweed, Hadley & McCloy LLP leased 56,527 and Polsinelli Shugart Inc. leased 56,514 at the Century Plaza Towers and eharmony leased 50,000 at Murdock Plaza in Westwood. RENTAL RATES The overall weighted average asking rent for direct space increased 3.4% to $3.70 P from $3.58 P last quarter. Average asking rental rates were last historically recorded in the current range at the end of 2008. The following submarkets all had significant asking rental rate increases: Beverly Hills, Century City, Santa Monica, Westwood and Brentwood. Average rental rates have been increasing since Q4 2011, this trend is expected to continue into 2015 as the market tightens. Average asking rents remained highest in Beverly Hills ($4.68 P) and lowest in West Los Angeles ($2.62 P). Class A asking rents were $3.84 P compared to Class B at $3.34 P and Class C at $2.78 P. WEIGHTED AVERAGE ASKING LEASE RATES BY SUBMARKET LEASING ACTIVITY BY SUBMARKET $ P PER MONTH (FSG) $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $3.48 $3.18 $3.33 $2.90 $2.48 $2.62 $3.82 $4.68 $4.21 $4.25 $4.40 240,000 220,000 200,000 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 12,237 36,528 30,329 82,947 96,015 150,525 154,378 113,433 220,218 191,650 176,398 P. 4 COLLIERS INTERNATIONAL

MARKET REPORT OFFICE OUTLOOK Overall the market conditions in West Los Angeles will continue to experience strong market fundamentals. Investment sales and leasing activity will contine to intensify into 2015. Rental rate increases and concession reductions are expected to continue as vacancy rates decline. As vacancy rates continue to tighten in Santa Monica and Playa Vista due to the creative user demand, developers have started eyeing the Culver City market. The West Los Angeles market will continue to be the leader of the Los Angeles basin office market with driving demand from the tech, media and entertainment sectors. MARKET DESCRIPTION West Los Angeles is a moderately large office market comprised of 56 million square feet, representing 19% of the total office space in buildings 25,000 square feet and greater in the Los Angeles Basin. It is also a moderately young and dense market, with 40% of its space built in 1985 or later, and 70% of its space contained within mid-rise and high-rise buildings. It has a large concentration of high-margin firms (including those in the entertainment, digital media, software, and finance sectors), and is situated in the midst of some of the most affluent neighborhoods nationally. HISTORICAL LEASING ACTIVITY Q4 2010 - UNEMPLOYMENT RATE United States, California & West Los Angeles Novemeber 2014 1,900,000 1,700,000 1,500,000 1,300,000 1,100,000 900,000 700,000 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 5.5% 7.1% 7.9% 500,000 2.0% 300,000 1.0% 100,000 4Q10 4Q11 4Q12 4Q13 4Q14 0.0% United States California Los Angeles County RECENT TRANSACTIONS & MAJOR DEVELOPMENTS SALES ACTIVITY PROPERTY ADDRESS SIZE SALE PRICE PRICE P BUYER SELLER 10000 W Washington Blvd 338,695 $159,000,000 $470 P LBA Realty Transpacific Development Co. 6310-6330 San Vicente Blvd, Los Angeles 214,519 $75,300,000 $351 P Douglas Emmett, Inc. Cambra Realty 12655 W Jefferson Blvd, Los Angeles 89,517 $38,000,000 $424 P Hudson Pacific Properties, Inc. HighBrook Investment Mgnt LEASING ACTIVITY PROPERTY ADDRESS LEASED LEASE TYPE BLDG TYPE LESSEE LESSOR 11975-11995 W Bluff Creek Dr, Marina Del Rey 131,592 Direct A Yahoo! Tishman Speyer 12130-12180 Millenium Dr, Playa Vista 58,000 Direct A Fullscreen Clarion Partners 2029 Century Park East, Los Angeles 56,527 Direct A Milbank, Tweed, Hadley & McCloy LLP JP Morgan/Hines 2049 Century Park East, Los Angeles 56,514 Direct A Polsinelli Shugart, Inc. JP Morgan/Hines 10900 Wilshire Blvd, Los Angeles 50,000 Direct A eharmony Tishman Speyer MAJOR DEVELOPMENTS PROJECT DEVELOPER SIZE SUBMARKET STATUS ESTIMATED COMPLETION Element LA (5 bldgs) Hudson Pacific Properties 280,343 Olympic Corridor Under Renovation Q2 2015 The Campus at Playa Vista Tishman Speyer 204,422 Marina Del Rey/Venice Under Construction Q2 2015 150 S El Camino Dr, Beverly Hills Kennedy-Wilson Properites 64,937 Beverly Hills Under Renovation Q1 2015 COLLIERS INTERNATIONAL P. 5

MARKET REPORT OFFICE DEFINITIONS OF KEY TERMS USED IN THIS REPORT Total Rentable Square Feet: Office space in buildings with 25,000 or more of speculative office space. Includes competitive space in Class A, B and C singletenant and multi-tenant buildings. Excludes non-competitive owner-occupied buildings, buildings that include 30% or greater of medical or retail space, and space that is underconstruction, under-renovation or off-market. Net Absorption: Net change in occupied square feet from one period to the next (includes the impact of change in vacant space available for sublease). Leasing Activity: Square feet leased from all known transactions completed during the quarter. Excludes lease renewals. 485 offices in 63 countries on 6 continents United States: 140 Canada: 42 Latin America: 20 Asia Pacific: 195 EMEA: 85 >> $2.1 billion in annual revenue >> 1.46 billion square feet under management >> Over 15,800 professionals Class A Space: Space that an image-conscious company would lease for its headquarters. Typically, this space has a very high level of finish and an excellent location, and commands the highest rents in the market. Class B Space: Highly functional, attractive space, but less prestigious than Class A Space, and commanding lower rental rates. Class C Space: Functional, competitive space, but with a lower level of finish and/or a less desirable location than with Class B Space, and commanding lower rental rates. Low-Rise: Buildings with a total of 4 floors or less. Mid-Rise: Buildings with a total of 5 to 13 floors. High-Rise: Buildings with 14 or more floors. Direct : Space in existing buildings that is vacant and immediately available during the quarter for direct lease, plus space that is vacant but not available for direct lease or sublease (for example, that is being held for a future commitment). Total : Space in existing buildings that is vacant and immediately available during the quarter for direct lease or for sublease, plus space that is vacant but not available for direct lease or sublease. Weighted Average Asking Rental Rates: Weighted by the total square feet available for direct lease. Data is based on Full Service Gross rents, and includes all costs associated with occupying the space, including taxes, insurance, maintenance, janitorial service and utilities. Reported on a monthly, per basis. Space Added (Net): Total square feet added during the quarter via construction completions, including renovated space returned to market, less total square feet taken off-market due to demolitions or conversions. Under Construction: Includes buildings that are in some phase of construction, beginning with foundation work and ending with the issuance of a Certificate of Occupancy. Technical Note Colliers International is continuously refining its database. The data shown in the historical tables and graphics in this report have been adjusted to take into account these changes in the database. This report has been prepared by Colliers International for general information only. Information contained herein has been obtained from sources deemed reliable and no representation is made as to the accuracy thereof. Colliers International does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This report and other research materials may be found on our website at www.colliers.com/greaterlosangeles. UNITED STATES: Downtown Los Angeles Office License No. 01908231 865 S. Figueroa Street, Suite 3500 Los Angeles, CA 90017 TEL +1 213 627 1214 FAX +1 213 327 3200 Downtown LA ALGERMISSEN, STEPHEN Executive Vice President BISSELL, BRENT Vice President DUMONT, CHRIS Senior Vice President DWIGHT, TIM KIRK, TERENCE Vice President MATTESON, CAITLIN Research Director Research Services MUMPER, HANS Executive Managing Director PELLOW, NATHAN Senior Vice President PUTNAM, RICK Managing Director Western Region Capital Markets ROBBINS, JAMES SPROWLES, MATTHEW STANICH, KYLE VILGIATE, NICO Executive Vice President El Segundo BRAWN, DOUGLAS Vice President GOODWIN, THACHER LASTITION, ERIC Senior Executive Vice President LUDWIG, GEOFFREY Senior Executive President WALSH, GREGORY T. Senior Executive President Accelerating success. P. 6 COLLIERS INTERNATIONAL www.colliers.com/marketname